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How to Create an Informed Compliance Publication

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How to Create an Informed Compliance Publication 1 What Every Member of the Trade Community Should Know About: Classification and Marking of Pipe Fittings under Heading 7307 Edited for scope by M.E.Dey & Co Inc AN INFORMED COMPLIANCE PUBLICATION JULY 2008 NOTICE: This publication is intended to provide guidance and information to the trade community. It reflects the position on or interpretation of the applicable laws or regulations by U.S. Customs and Border Protection (CBP) as of the date of publication, which is shown on the front cover. It does not in any way replace or supersede those laws or regulations. Only the latest official version of the laws or regulations is authoritative. First Published: July 2008 QUESTIONS TO ASK WHEN CLASSIFYING PIPE AND TUBE FITTINGS ... 2 TUBE OR PIPE FITTINGS OF IRON OR STEEL....................................... 3 PARTS OF GENERAL USE ............................................................................ 4 WHAT IS A PIPE OR TUBE? .......................................................................... 4 IRON AND STEEL DEFINED .......................................................................... 4 SUBHEADING 7307.11.00 THROUGH 7307.19.90.. Cast fittings ................... 5 SUBHEADINGS 7307.21 THROUGH 7307.29. Stainless Steel fittings ........... 6 SUBHEADINGS 7307.91 THROUGH 7307.99... Other ................................... 7 ENTRY REQUIREMENTS ............................................................................. 8 SPECIAL MARKING REQUIREMENTS ........................................................ 9 INTRODUCTION This Informed Compliance Publication (ICP) proposes to explore both the complexities of the tariff nomenclature regarding iron and steel pipe fittings and the corresponding special country of origin marking requirements. Iron and steel pipe fittings are classified in Section XV, Chapter 73, Heading 7307, Harmonized Tariff Schedule of the United States (HTSUS), which reads: “Tube or pipe fittings (for example, couplings, elbows, sleeves) of iron or steel.” M.E. Dey & Co. ▪ [email protected] ▪ 414-747-7000 ▪ www.medey.com 2 QUESTIONS TO ASK WHEN CLASSIFYING PIPE AND TUBE FITTINGS: Are the fittings made of iron or steel? If yes, continue with questions. If not, classify elsewhere in the HTS! Are they used to connect two pieces of pipe (not hose), or to connect a pipe to another apparatus or to close off the end of a pipe? If yes, continue with questions. If not, classify elsewhere in the HTS Are the fittings cast? If yes, continue with questions of Section A If not, continue with questions of Section B Section A Are they nonmalleable cast iron? If yes, classify in subheading 7307.11.00. If not, are they of ductile iron? If yes, classify in subheading 7307.19.30. If not, classify all other cast fittings in subheading 7307.19.90. Section B Are they made of stainless steel? If yes, continue with questions in Section B. If not, continue with questions in Section C. Are they stainless steel flanges? If yes, classify in subheading 7307.21.10 or 7307.21.50 depending on whether or not the flange is machined, tooled or otherwise processed after forging. If not, are they stainless steel threaded elbows, bends or sleeves? If yes, classify in subheading 7307.22.10 if the fitting is a sleeve and in subheading 7307.22.50 if a bend or elbow. If not, are they stainless steel butt welding fittings? If yes, classify in subheading 7307.23.00. If not, classify in subheading 7307.29.00. Section C Are they flanges? If yes, classify in subheadings 7307.91.1000 and 7307.91.3000 if they are not machined, not tooled or not otherwise advanced after forging depending on whether they are iron or nonalloy steel or alloy steel. Classify in subheading 7307.91.50 if they are machined, tooled or otherwise processed. Classification at the ten digit level is dependent upon the inside diameter and whether or not they are iron or nonalloy steel or of alloy steel. M.E. Dey & Co. ▪ [email protected] ▪ 414-747-7000 ▪ www.medey.com 3 If not, are they threaded elbows, bends or sleeves? If yes, classify in subheading 7307.92.30 if a sleeve or coupling and in subheading 7307.92.90 if a bend or an elbow. If not, are they butt welding fittings? If yes, classify in subheadings 7307.93.30 through 7307.93.90 depending on the measurement of the inside diameter, the chemistry of the fitting and whether the fitting is machined, tooled or otherwise processed after forging. If not, (butt welding) classify all fittings that are not machined, not tooled or not otherwise processed after forging in subheadings 7307.99.10 and 7307.99.30 dependant on the chemistry. If processed after forging, classify all other fittings in subheading 7307.99.50. TUBE OR PIPE FITTINGS OF IRON OR STEEL What is a pipe fitting? Merriam-Webster’s Online dictionary defines a pipe fitting as, “a piece (as a coupling or elbow) used to connect pipes or as an accessory to a pipe.” In addition to connecting pieces of pipe, pipe fittings are also commonly used to change the direction of pipe or to close off the end of a pipe. The Explanatory Notes (ENs) to Heading 7307 further describe a pipe fitting for the purpose of classification within this heading. They state, “This heading covers fittings of iron or steel, mainly used for connecting the bores of two tubes together, or for connecting a tube to some other apparatus, or for closing the tube aperture. How do pipe fittings connect pipes or tubes? Pipe fittings that connect the bores of two tubes, etc. do so by: screwing, when using cast iron or steel threaded fittings; by welding, with butt-welding or socket welding steel fittings; or by contact when using removable steel fittings. Therefore, this heading includes, among other things: flanges, elbows, bends, reducers, tees, crosses, caps and plugs, stub-ends, fittings for tubular railings and structural elements, multi-branch pieces, nipples, unions, clamps and collars. This heading does not however cover articles used for installing pipes and tubes but which do not form an integral part of the bore (e.g. hangers, stays and similar supports which merely fix or support the tubes and pipes on walls, clamping or tightening bands or collars (hose clips) used for clamping flexible tubing or hose to rigid piping taps, connecting pieces, etc.).” Also excluded from classification in this heading are articles used for installing pipe and tube that do not form an integral part of the bore. The bore of a tube is illustrated above: Further, a list of items excluded from classification in this heading is found in the Explanatory Notes (ENs) to Heading 7307. They include: (a) Clamps and other devices specially designed for assembling parts of structures. (b) Bolts, nuts, screws, etc., suitable for use in the assembly of tube or pipe fittings. (c) Thermostatic bellows and expansion joints. (d) Hangers, stays and similar supports used for installing pipe and tube as mentioned above; and tube plugs, threaded or not, fitted with a ring, hook, etc. (e.g. those used for fixing washing lines). (e) Fittings equipped with taps, cocks, valves, etc. (f) Insulated joints for electrical conduit tubing. (g) Connections for assembling bicycle or motorcycle frames. M.E. Dey & Co. ▪ [email protected] ▪ 414-747-7000 ▪ www.medey.com 4 PARTS OF GENERAL USE Section XV, Note 2, HTSUS, states that “Throughout the tariff schedule, the expression ’parts of general use’ means: (a) articles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of base metal.” Therefore, the pipe fittings of iron or steel of Heading 7307 are considered parts of general use. Pipe fittings would not be classified as part of another item anywhere throughout the HTSUS where parts of general use are excluded but would remain classified as pipe fittings. For example, NY Ruling K87017 (dated, July 9, 2004), classified auto-weld fittings for bioprocessing equipment in Heading 7307 because Note 1 to Section XVI (the section where this equipment is classified) excludes parts of general use. WHAT IS A PIPE OR TUBE? It should be noted that only iron and steel fittings for pipes and tubes are classified within Heading 7307. PIPE, TUBE The courts determined in John V. Carr & Son, Inc. v. United States, 76 Cust. Ct. 162, C.D. 4652, (1976), that “a pipe or tube as it is known within the industry is made of a single extruded compound rather than many materials.” In addition to metal pipe, polyvinylchloride (PVC) pipe is also made of a single extruded material. Therefore, HQ Ruling 088393 (dated March, 26, 1991) held that iron or steel fittings that connect PVC pipe were classified in Heading 7307. HOSE, is commonly made up of many materials. Fittings that connect hose would not be classified in 7307. However, fittings that are suitable for connecting both hose and pipe or tube of a single extruded material are classified in 7307. IRON AND STEEL DEFINED Heading 7307 provides for pipe and tube fittings of iron or steel. The pipe fittings of this heading can be divided into three major groupings: cast iron or cast steel fittings, stainless steel fittings and all other iron or steel fittings. Iron (Fe) is a silver-gray, hard, brittle element. Although malleable and capable of being hammered, pure iron is rarely used w/o adding other elements. Iron carbon alloys are commonly used in the production of fittings. Steel is defined in Chapter 72 Note 1(d) of the HTSUS as ferrous materials other than those of Heading 7203 which are usefully malleable and which contain by weight 2 percent or less of carbon. However, chromium steels may contain higher proportions of carbon. Stainless steel is defined in Chapter 72 Note 1(e) of the HTSUS as alloy steels containing, by weight 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements.
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